student loan tangle
Date: Sat, 01/20/2007 - 21:10
student loan tangle
Now they say it is $120K (includes $20K fees for the new collection agency).
Every so often I ask them for some documentation of how the total was determined. "They" say I signed a contract. When I ask to see it, they send me the signature page only with no figures at all. I REFUSE to cooperate as they also refuse to cooperate. I will not pay anything until the numbers are corrected - including falsely calculated interest. I believe that if I make a payment it will be an admission to owing that amount.
In the meantime I have no house or car in my name. I would like to buy a house, but am afraid that it would be seized. They said that IRS can garnish wage, but for the past 2 years, I am an independant contractor and receive monies from 5-10 companies each month. So far nothing has been deducted. I had to pay income tax, so nothing was seized there either.
Most student loans are backed by the government, which is why pl
Most student loans are backed by the government, which is why places give them out so easily. I've never heard of an assignment invalidating the claim, any promissory note can be assigned/transferred to another lender, but I would think there are certain rules to follow in order for the government to hold its guarantee.
Somehow the numbers don't seem to add up. And I don't think they can just willy-nilly add an extra $20K as a collection fee. Every debt needs to have an associated ledger. Somehow they need to be able to calculate a balance ... (Principle Amount + Accrued Interest + Late Fees - Payments Made = Current Balance). There's no reason why they shouldn't be able to provide an account detail, showing all activity on the account. I would say to put your request in writing, and specifically ask for the account ledger showing an itemized calculation explaining your balance.
Really, a home can only be seized by the mortgage company (as in a foreclosure) or for not paying property taxes on it. If you were to buy a home and get a mortgage, they couldn't just come and take the house, because the mortgage company would have a first and primary lien on the property. They could sue you and put a subsequent lien on the house, which just means you would never be able to sell it until the lien was satisfied.
If they wanted to go through the whole process of getting a judgment, which they can do, then they can file a third-party citation against the companies you do business with. Meaning, even though you are an independent contractor, the court can order your payors to withhold funds and direct them towards the creditor until the judgment is satisfied.
A MPN or master promissory note for student loans is valid valid
A MPN or master promissory note for student loans is valid validation.
Have you ever logged into NSLDS to check out your balances?? http://www.nslds.ed.gov/nslds_SA/
You don't indicate how old these loans are and long you have been in default. Student loan interest and late fees add up very quickly, and the collection fees are a mandatory charge applied to your balance by our guarantor, not the CA.
When you received statements indicating at $68k balance, did you question it then?? When you consolidate, you effectively take out a new loan. Any payment history or accounting prior to the consolidation is something YOU would have to research with the original holders of the loan. When the default claim was paid by your guarantor, all of your past due interest and late fees were again capitalized. You would need to go back to the consolidating lender to get the history.
Your lack of cooperation is going to put you in hot water. You say you want to purchase a home, but with a loan this size in deault, you are going to be out of luck. No mortgage company is going to touch someone with a $100K plus governemnt claim on their back. Not to mention that once is it discovered you are a contractor, they are more likely to file a judgement against you.
